ArcelorMittal set to ink stage-II pact for 12MTPA steel plant in Jharkhand

Ranchi: Steel major ArcelorMittal’s high-capacity greenfield project is likely to get a push in Jharkhand as the state government gears up to ink a second-stage memorandum of understanding (MoU) with the company by January-end.Dhritiman Ray | January 16, 2016, 15:00 IST

Officials in the state industry department said the high-powered industry committee with chief minister Raghubar Das as its chairman will meet next week to review the global conglomerate’s detailed project report, raw materials, source of funds and other paraphernalia for the 12 million tonne per annum (12MTPA) greenfield project. While stage-I MoU is a formal contract where a compnay proposes its project and estimates, the stage-II entails a study of the aforesaid factors and will enable the company to start mining activities.

The second stage MoU comes three months after the Raghubar Das-led-government granted approval to the steel behemoth for carrying out exploration work to determine iron ore and manganese deposits at Karampada in the Saranda reserved forest division in West Singbhum district last November. As per its initial proposal, the company had mentioned the need for diverting 202.35 hectares of forest land in the division for the project.

The ArcelorMittal India Limited (AMIL), the conglomerate’s Indian company handling the project, was given prospecting license for carrying out exploration in April 2010.

“The company has already began its drilling work in the area to check for reserves of iron ore and manganese,” industry director K Ravikumar said. He said the company has suggested some changes (from its stage one MoU). The stage one MoU was inked between the two parties in 2005.

The proposed 12MTPA plant was initially slated to come out in Torpa block of Khunti district and Kamdara block of Gumla district. However, sources in the department ranks said the company has zeroed in on Chas in Bokaro for the project as it plans to set a 6MTPA unit in the first phase. The annual iron ore consumption for the 12MTPA project is pegged at 20 million tonne.

Earlier in 2015, the company had submitted 300 acres of land to the state forest and environment department for compensatory afforestation.